Chinese online video giant Youku said Monday that it has completed its acquisition of rival Tudou Holdings in a stock deal that was worth more than $1 billion when it was announced earlier this year.

Tudou, so far the second-largest online video site in China, is now a wholly owned subsidiary of Youku. Youku, the largest Chinese video destination, has changed its name to Youku Tudou. "Youku" means "what's best and what's cool" in Chinese.

The combined entity is estimated to have a more than 30 percent share of the Chinese online video market. It will have more than 450 million Web users, according to observers.

Youku, led by founder and chairman Victor Koo, has been striking content deals with major Hollywood conglomerates, most recently with the likes of NBCUniversa and DreamWorks Animationl.

The deal comes as online video has remained a fragmented space in China. Both companies reported losses for 2011 amid higher content costs and spending on online bandwidth. Some reports have estimated that the merged company could save tens of millions of dollars in content licensing fees due to its bigger scale.

Youku's stock will remain listed in the U.S., while Tudou shares will stop trading on Nasdaq.